Wednesday, September 03, 2014 11:42:38 PM
The most obvious reason a shell company does a reverse split, is so it will have shares available in the treasury to offer a merger candidate. The immediate effect of issuing those shares to a merger candidate is an increase of the O/S.
So, anyone thinking that the MCII O/S is going to remain as it is now, after the reverse split, has a false assumption. It is my opinion that this reverse split was for the exact reason I stated. To have enough treasury shares to be able to offer a merger candidate as enticement to merging into this shell.
That being said, there is no indication that this will occur any time soon. The management here has a couple of other shells that after reverse splits, have remained dormant. By the same token, a merger could be announced tomorrow. I highly doubt that though. Generally there is a period of rumors and speculation generated, so there is some interest in the merger, before it is completed. Insiders want to have a run up of the stock, so they can sell some shares for working capital. So, if a merger is in the works here, it is in its infancy.
Time will tell. GOOD LUCK
Those that enter with certainty, soon realize doubt; While those that enter with doubt, will discover certainty.
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